TLDR Real Vision’s Raoul Pal observes liquidity beginning to flow from AI equities into cryptocurrency markets A declining US dollar could provide the catalyst for an extended crypto market r
Raoul Pal, the founder of Real Vision, believes liquidity is beginning to rotate out of artificial intelligence stocks and back into cryptocurrency markets. He shared these observations during an appearance on Trade Secrets with Cointelegraph.
ROTATION: Raoul Pal says capital is starting to rotate back into crypto from AI.
His tell: when $BTC ran ~25% to $80K in late August, Nvidia had 7 straight red days.
AI cools off, crypto heats up. The money's moving. pic.twitter.com/xlahu0jz8Z
— CryptosRus (@CryptosR_Us) October 7, 2026
According to Pal, elevated bond yields combined with a robust US dollar have constrained liquidity flows across financial markets. He suggested that dollar weakness could serve as a catalyst for continued upward momentum in digital assets.
“If they can engineer the dollar lower, then we get a green light for further movement in crypto,” Pal explained. He clarified that he hasn’t yet observed a comprehensive green light signal across all asset classes.
The US Dollar Index has been hovering near its 2025 peaks. Meanwhile, the US 10-year Treasury yield reached 5.29% in September, while the Federal Reserve implemented a 25 basis point rate increase.
Bitcoin’s current cycle recovery primarily occurred between August 19 and August 25, during which the flagship cryptocurrency surged approximately 25% to reach $80,000. Throughout that identical period, artificial intelligence chip manufacturer Nvidia experienced seven consecutive days of declining share prices.
Pal noted that whenever the AI trade experiences temporary slowdowns, capital tends to flow toward cryptocurrencies. This pattern demonstrates that liquidity remains constrained rather than freely available throughout financial markets, he argued.
However, Pal emphasized that a severe crash in AI stocks wouldn’t benefit crypto markets. Such a scenario would indicate liquidity draining from the entire financial system, which would create headwinds for digital assets as well.
Pal outlined his ideal scenario: a weakening dollar, a steepening yield curve, and expanded bank lending activity. Failing that, his secondary preference would be for AI stocks to consolidate sideways while investment capital migrates into cryptocurrency markets.
In June, Amazon Web Services unveiled functionality enabling AI agents to purchase web content using stablecoins. Coinbase facilitates payment verification through its x402 protocol, with USDC on the Base network included among the supported payment options.
Pal suggested that AI agents might eventually launch fundraising initiatives by creating tokens for projects spanning timeframes from one week to twelve months. He believes Ethereum and Solana could experience heightened adoption as software applications leverage their smart contract infrastructure for transactions.
Bitcoin is unlikely to capture a substantial portion of this emerging activity, he said.
Regarding predictions that Solana will eclipse Ethereum in market capitalization, Pal expressed caution. Multicoin Capital co-founder Kyle Samani stated last month that Solana would exceed Ethereum’s market cap during this market cycle.
Pal responded that Samani “needs to hold his horses a little bit,” while acknowledging the possibility exists.
On Monday, Solana recorded approximately 3.2 million active addresses within a 24-hour window, whereas Ethereum registered 387,000, based on DefiLlama data. Ethereum currently secures roughly $54.4 billion in decentralized finance protocols, compared to Solana’s $6.7 billion.
Pal explained that he evaluates the two networks using a metric he terms “economic density,” calculated as total value locked divided by active users. According to this framework, Solana’s activity predominantly consists of speculative trading involving smaller capital amounts per participant.
Pal disclosed that he no longer provides public price predictions because his forecasts frequently circulate without proper context on social media. He characterized the million-dollar Bitcoin by 2030 projection as a “meme,” though he wouldn’t entirely dismiss it happening by 2032.
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